Rebirth of the investment era

"What huge problem?" Standing next to Fang Xinsheng, Mou Zhengxing, the product trading manager of the 'Manniu No. 2' fund who was also carefully reviewing the market performance in the morning, did not hear Fang Xinsheng's words clearly for a while, and couldn't help but hurriedly recovered and asked, "Mr. Fang said that the market rose too sharply this morning, and the sentiment advanced too quickly, which resulted in many stocks not changing hands enough and the chip structure being unstable. Is it very likely that there will be a diving trend in the afternoon?"

Fang Xinsheng chuckled, shook his head, and said: "I'm not referring to today, but to the upward trend of the entire market, which seems a bit too eager. You know, the index trend pattern is advancing so fast, and the market's hype mood, Investment sentiment has always been in a relatively hot state.

This will lead to the weakening of the desire of many short- and medium-term capital groups that have made substantial profits at this stage, as well as the newly added capital groups to unwind their arbitrage, to sell immediately.

That is to say, the market's short- and medium-term profit orders and unwinding orders will become more and more serious.

Once the market's position capital groups, the desire to sell continues to weaken.

Then, the market turnover rate will inevitably continue to decline, and at the same time, the number of accumulated profit orders and unwinding orders will also rise rapidly.

However, we all know it.

The continued hot investment sentiment and speculation cannot be maintained forever.

Subsequently, as the market news changes, or after the market continues to surge, the money-making effect weakens, and its investment sentiment and hype sentiment are bound to decline and weaken after many good things are realized and profits are realized.

And when the mood enters a recession.

Then, as the market continues to rise, the huge profits and arbitrage accumulated continuously will naturally be sold intensively at this time.

However, what is clearly foreseeable is...

In this case, it is difficult to withstand the concentrated outflow of profit-taking and arbitrage orders, as well as the bullish power of the market recession, or the bullish power that has reached the end of its strength.

It's like a dam holding water.

If the rainfall continues to increase and the water level of the river continues to rise, and the dam no longer continues to release water in front of it to maintain a safe water level, once the water level significantly exceeds the warning line, it will be too late for the dam to release the flood.

The long capital group in the market cannot bear the profit taking and settlement of concentrated selling.

Continuous extreme market adjustments are very likely to occur.

And when extreme market adjustments continue to occur, the market's money-making effect is bound to decline rapidly and quickly enter the money-losing effect stage.

These market performance factors will further drive new investors to quickly stop losses.

In the end, a comprehensive stampede by the financial group was formed.

It can be said that once the market develops to this situation, the investment confidence that the market has finally built up will be greatly tested. At the same time, the current upward trend of the market will inevitably be completely reversed, and the market pattern of 'bull market' will be completely reversed. , will also fall into great uncertainty.

These...are what I'm worried about.

As for the short-term trend of the market, or the intraday trend.

As long as the overall chip structure of the market has not been completely loosened and the newly added long financial power in the market has not been completely exhausted, there should not be much of a problem. "

After listening to Fang Xinsheng's analysis, Mou Zhengxing finally came to his senses and said with a smile: "Although Mr. Fang, you said this is a hidden worry in the current market development, but now that the market sentiment has reached this point, short selling continues to rise. The situation has also been formed.

Then we cannot change the market trend, or affect the market performance.

In the final analysis, as a member of the group of profit-making funds on the market, in this case, we can only follow the market trend and harvest the last bit of excess profits in the market as much as possible. "

"You can't say that." Fang Xinsheng pondered for a moment, took Mou Zhengxing's words, and continued, "With the scale of funds managed by our institution, although we cannot change the current market trend and the market trend, it will affect market sentiment. transformation.

However, on the premise that we know that there is such a hidden worry and hidden danger in the market.

We can prepare corresponding investment and trading strategies in advance, so that we can deal with the trend changes and market changes that are likely to occur in the subsequent market.

At the same time, we know the current shape and position of the market.

Knowing the development of the index and the specific main line market trends, you can maintain a clear-eyed view of the market and avoid getting lost in the current hot market emotions, so that you can continue to adjust positions on a large scale and concentrate your positions to continue chasing the corresponding highs in the market. Popular stocks further squeeze excess profits from the market.

In other words, only by knowing yourself and the enemy can you win every battle.

Only when we know the possible development direction of the market and have sufficient expectations in mind will we not panic when facing extreme changes in the market that are very likely to occur. "

"Xiao Fang is right!" At some point, Liu Xin, the general manager of Xiniu Fund Company, also came to the main fund trading room. After listening to Fang Xinsheng's words, he answered with a smile, "They all say that the market When the market is crazy, be cautious, and when the market is pessimistic, be optimistic. It seems...this sentence is valid whether it is a bull market or a bear market."

Hearing Liu Xin's voice, Fang Xinsheng looked back at the other party, nodded slightly, and said: "Fear when the market sentiment is crazy, and greed when the market sentiment is panic. They are two extreme reflexive states in the trading market. Although the market often does not necessarily provide immediate trend feedback based on emotional responses, it is always right to be cautious when fearful and optimistic when greedy.”

"Then according to what you want, Mr. Fang..." Mou Zhengxing heard the conversation between the two, thought about it, and said, "At the current stage, our company's two main fund products cannot continue to eliminate the weak and retain the strong, adjust the position structure, and further Instead of concentrating positions, should we consider 'reducing positions and taking profits'?"

Fang Xinsheng continued to nod and said: "This is natural. In the current market, many industry institutions have judged that the market will be even crazier in December, because each institution will operate more aggressively in order to rank its performance at the end of the year. At the same time, the market There are also potential benefits that have not been realized in the future.

However, everyone has forgotten.

At the current stage, basically all the active capital groups that should enter the market have already entered the market.

The subsequent major increase in long positions in the market can only come from a group of potential investors outside the market and other new funds entering the market.

That is to say...

Next, regardless of whether there is good stimulation or not.

The influx of funds outside the market will continue to decrease, while the potential short selling power accumulated on the market is increasing.

In this case, even if there are potential benefits, they will only be realized and turn into a negative trend.

What's more, when everyone in the market predicts that the market will develop in one direction, the market often does not develop in the direction that everyone expects.

Therefore, we reduce our positions and take profits in advance.

From this moment on, every time the Shanghai Stock Index rises by one point, it is necessary to reduce the position by 5%, harvest profits immediately, and close when the situation is good. It is still very necessary to maintain the current net value of our company's two main fund products. "

"I think what Xiaofang said makes sense." Before Mou Zhengxing could respond, Liu Xin said again, "After the market's continuous short squeeze and rise during this period, our two main fund products are accurately betting on the 'Big Financial ', 'Big Infrastructure', and 'Military Industry' are several popular mainline market conditions, and we have already reaped huge profits. At the same time, the net value performance of its fund has also significantly exceeded our previous expectations, and it has completed this year's performance target. Moreover, we have also achieved excellent results in the performance rankings of related fund products in the industry, and have been generally recognized by the majority of investor groups who have invested in us. In this way... Now that the market situation has developed, certain hidden worries have emerged.

Then there is indeed no need for any more desperate and radical operations.

At this time, it is enough to stabilize the performance ranking of our fund products and control the retracement of the fund's net value at the year-end mark.

Based on existing performance and achievements.

As long as we understand that the market situation is not too bad, we will not have any pressure in business expansion. "

When Mou Zhengxing heard Liu Xin's words and saw that the two heads of the company had said so, he could only continue to reserve his own opinions. He nodded and said, "Since Mr. Fang and Mr. Liu feel so, then I Immediately ask everyone to change the corresponding trading strategy and implement the trading strategy just mentioned by Mr. Fang."

After saying that, he convened several trading groups in the trading room for a brief lunch meeting.

Communicate new trading strategies quickly.

At the same time, the market conditions in the morning and the performance of individual stocks held by the fund were sorted out again, and the standards for holding individual stocks that gave priority to reducing positions and taking profits were formulated under the "reduce positions and take profits" strategy.

With the change of Xiniu Fund Company's trading strategy.

The lunch break is also fleeting.

Unknowingly, 1 o'clock in the afternoon arrived. After the two cities briefly suspended trading for an hour and a half, the bullish sentiment in the market was further brewing. Also, inside and outside the market, major financial groups and institutional groups in the industry adopted different strategies. Conversion, under different interpretations of the disk, once again ushered in a formal continuous bidding transaction.

I saw that the time hand had just crossed 1 o'clock.

The stagnant market conditions of the two markets began to change rapidly. Whether it was the Shanghai Stock Exchange Index, the A50 Index, the Shenzhen Stock Exchange Index, the ChiNext Index, or the Small and Medium-sized Enterprises Index, they all climbed up again in an instant, quickly recovering from the market's previous close in the morning before noon. Short-term pullback trend range.

At 1:01, the Shanghai Stock Index regained its 85% gain.

At 1:02, "Huaxin Securities" increased by more than one point in a straight line, once again standing at the 6% increase position for the day.

At 1:03, the ‘Securities’ sector index once again reached a 75% increase.

At 1:04, the intraday increase of ‘Huaguo Construction’ also exceeded the 6% mark again.

At 1:05, the stock price of MCC China rose linearly again, and with a thunderous momentum, it broke through the morning's market high, with an increase of 8%, and it was likely to hit the daily limit.

At 1:06, ‘Fushun Special Steel’ sealed its daily limit.

At 1:07, the stock price of MCC hit its daily limit.

At 1:08, under the main attack of 130,000 consecutive large buying orders, the stock price of 'Huaguo MCC' completely sealed the daily limit, and the stock price also hit a new annual high at this moment, completely getting rid of the continuous After nearly 2 months of shock adjustment, it once again showed a main upward trend of breakthrough form.

At 1:09, the Shanghai Stock Index reached the 2% increase mark.

At 1:10, the two heavyweight stocks of China South Locomotive \u0026 Rolling Stock Corporation Limited and China North Locomotive \u0026 Rolling Stock Locomotive \u0026 Rolling Stock Co., Ltd. all rose together, reaching the 5% increase mark for the day. At the same time, the daily trading volume of the two checks also increased at this moment. , breaking through the 1.5 billion mark, and the amount of active buying funds on the two stocks can be said to be endless.

At 1:11, the 'Securities' sector index rose by more than 4%.

At 1:12, the stock price of Hua Investment Capital, a leading stock in the securities sector in the early days, hit the daily limit.

At 1:13, the stock of Huazhong Capital closed its daily limit, and at this moment, the net inflow of main funds in the securities sector once again exceeded 3 billion, which shows that the securities sector continues to be short-squeezed and upward. In the process of continuously hitting new highs, a large number of major financial groups are still increasing their positions on a large scale in this direction.

At 1:14, the stock price of 'Hengsheng Electronics' hit the 8% increase mark.

At 1:15, the 'Internet Finance' sector index also hit a new intraday high, and the intraday increase was quickly approaching the 5% increase mark.

At 1:16, the intraday gains of the two major weighted sectors, banking and insurance, all returned to above the 5% mark.

At 1:17, the A50 index's intraday increase also hit a new intraday high, returning to the 5% increase mark.

At 1:18, the number of stocks in the two cities reached their daily limit and the number of red-listed stocks also hit a new high. The overall money-making effect of the market reappeared in a crazy scene.

At 1:19, the capital groups that overflowed into the 'Internet software' and 'Internet application' industry sectors also began to rush to raise funds and do long positions on a large scale. Among them, such as 'Huaguo Software', 2345, Inspur Information, and Internet. Su Technology, Ren Zixing, Anshuo Information...' and other related stocks also moved accordingly.

At 1:20, the Shanghai Stock Exchange Index successfully reached the 2% increase mark.

At 1:21, the two major indexes, the Shenzhen Stock Exchange Index and the ChiNext Index, also hit new intraday highs.

"F*ck, crazy, this market trend is so crazy." At about 1:25, inside Zexi Investment Company in Shanghai, in the main fund trading room, he stared at the real-time changes in the two cities, with a focused look on his face. Zhou Kan was shocked again and said in surprise, "Looking at this trend, is the Shanghai Stock Index really going to reach 3,600 points in one breath?"

in his exclamation.

The Shanghai Stock Index is less than 15 points away from the 3,600 point mark.

According to the trend pattern of the Shanghai Stock Exchange's rapid upward trend after the market opened in the afternoon, the Shanghai Stock Exchange Index may jump over the 3,600-point mark in another ten minutes. (End of chapter)